HI-LEX CORPORATION FY2008
|Financial Overview||(in millions of JPY)|
|FY2008||FY2007||Rate of Change (%)||Factors|
|Sales||132,949||132,847||0.1||-Despite a fall in sales in North America, revenues increased slightly from a year ago, supported by stable car production in Japan and significant growth in sales in China and other Asian countries.|
|8,274||5,262||57.2||-Operating profit increased significantly as Mexican operations returned to normal production schedules and Asian operations enjoyed strong sales.|
|Sales||72,269||68,224||5.9||-Sales rose, thanks to stable production in Japan.|
|Sales||42,213||48,285||(12.6)||-Sales decreased from a year ago due to the rapidly deteriorating U.S. economy and a large drop in auto production.|
|Sales||33,357||29563||12.8||-Sales increased because of greater sales in China and other countries buoyed by a favorable economy.|
|3,248||2,073||56.7||-Operating profit rose significantly thanks to the enhanced capacity utilization rate, which resulted through greater demand and increased quantities of parts produced and procured locally.|
|Sales||5,821||5,511||5.6||-Sales climbed year-on-year thanks to new orders received in the U.K. and other markets.|
-The Company announced that it would establish a new sub-subsidiary, Daedong Hi-lex of America Inc. LLC, in Alabama, U.S.A., as of October 1, 2008. The Company plans to ensure a highly-efficient supply system for the Korean automakers based in the United States and further expand its production & sales activities in the region. The new sub-subsidiary will be capitalized at 7.8 million U.S. dollars and is due to become a consolidated subsidiary of the Company upon completion of capital injection procedures. The new unit will be engaged in the production, as well as sale of door modules, window regulators and power closures. (From a press release on Apr. 21, 2008)
Business plans for fiscal year 2009 and after
-The Company aims to establish a global production and development structure with a focus on Japan, the U.S.A., Europe, and Asia.
1. North America
1) The Company will establish Daedon Hi-Lex Alabama. The new subsidiary will begin producing door modules for Kia Motors and Hyundai Motor in November, 2009.
1) Chongqing TSK Control Cable System Co., Ltd.
In order to expand the plant and increase capacity the Chongqing facility was moved to the Chongqing Economic & Technical Development Zone. (Operations at the new facility started in December 2008)
2) Guangzhou Hi-Lex Cable System Co., Ltd.
The Guangzhou facility completed its capacity expansion plan to meet increased demand from Japanese manufacturers. (Operations on the new production lines began in December 2008)
3) The Group will establish Changchun TSK Automotive Inc. to supply parts to the northeastern region in China. (Production is scheduled to begin in May, 2009)
1) In 2008, Daedon Hi-Lex will start building a new plant in Ulsan City in order to enhance its support to Hyundai Motor. (Production is scheduled to begin in October, 2009)
|R&D Expenditure||(in millions of JPY)|
-The Company developed a high-performance silicon grease, which prevents contact fault. The grease technology can be used in vehicles which use an increased number of electronic components.
-The Company developed oscillation-damping materials to produce anti-vibration cables. The new cables control noise and vibration inside vehicles.
-Electric components such as seat lock unlock actuators and fuel lock actuators.